Follow-On Investment into Penske Truck Leasing Co., L.P. ( PTL ) A Leading Truck Leasing, Rental & Logistics Company in North America

Transcription

1 Follow-On Investment into Penske Truck Leasing Co., L.P. ( PTL ) A Leading Truck Leasing, Rental & Logistics Company in North America September 8 th, 2017 Mitsui & Co., Ltd.

2 2 Topics 1. Transaction Summary 2. North American Market Overview 3. PTL Facts 4. Mitsui Value Proposition & Synergies 5. Partnership with Penske group companies

3 3 1. Transaction Summary Follow-on investment into PTL, a leading truck leasing, rental & logistics company in North America Acquired Interest 10%(Mitsui Total Interest 30%) Amounts Execution Approx.$435Mil.(Approx. 48.0Bil.) Sep. 7 th, 2017 (Executed) <PTL Investment Scheme> 10.0% 18.1% 39.8% 30.0% 28.9% 41.1%

4 2. North American Market Overview A) Freight Volume & Heavy Duty Truck Utilization U.S. truck freight projected to grow 27% by 2027 vs (average +2%/year). Truck utilization climbed back to the level before financial crisis in (Source:American Trucking Associations) B) Heavy Duty Truck Sales & OEM Backlog (Unit: Thousand ) Heavy Duty Truck Sales and OEM backlog are returning to normal levels. (Source:ACT Research ) 4

5 2. North American Market Overview C) Share by Transport Mode in North America Trucks serve as the main mode of transportation in North America at 80% share (by revenue) and is expected to maintain its position. (Source:American Trucking Associations) D) 3PL Market in the United States With the recovery of the U.S. economy, 3PL (3 rd Party Logistics) market reached $175Bil. in More customers tend to embrace outsourcing. (Source: Armstrong & Associates Inc.) 5

6 3. PTL Facts Year/Place Established 1969/Pennsylvania, U.S. Representative/Title Brian Hard/President & CEO Revenue Approx.$6.4Bil. Credit Rating S&P:BBB/Moody s:baa2 Full- Service Leasing Contract Maintenance Truck Rental Logistics Vehicles customized to corporate customer needs Preventive and full maintenance by utilizing +700 North American locations Maintenance for customer proprietary equipment Optimizing uptime and asset value through rigorous services, powerful systems and quality assurance Short-term rental Commercial Rental: Supporting customer s capacity requirement Consumer Rental: Serving reliable, fuel-efficient truck to local and one-way household movers Delivering concrete solutions to customer's complex supply chain and logistics needs 6

7 7 3. PTL Facts A) PTL Positioning PTL operates and maintains a fleet 250,000+ vehicles in North America and Australia. PTL s subsidiary, Penske Logistics, operates over 360 locations across North America, South America, Europe, and Asia. PTL maintains a network of approx service locations and 3,000+ truck rental locations. The core strength of PTL is its nationwide network of direct customer Touch-Points.

8 3. PTL Facts B) Opportunities for growth Strong incentive for private fleets to shift to leasing due to advanced technology driving the price of trucks upwards. Stringent safety regulations expected to drive the cost of small/mid-size companies and provide further growth opportunity for PTL. 8

9 4. Mitsui Value Proposition & Synergies Leasing/Rental/Logistics Design and implementation of optimized transportation networks for Mitsui s affiliated companies and partners Development of Japan/Asia based customers Business Development Joint development of business to strengthen PTL operation Utilization of knowledge acquired via the PTL investment for the global growth of Mitsui commercial vehicles business IoT Big Data analysis of vehicle condition collected via remote communication device Introduction of products and technologies contributing to advanced predictive & preventive maintenance Introduction to collaborative opportunities with Mitsui partners active in this area Platooning is one area for collaboration to address driver shortages and gas emission issues at hand 9 New Technology

10 10 5. Partnership with Penske group companies A) History Penske Corporation ( PC ) is a diversified transportation services company whose subsidiaries operate in a variety of industry segments, including retail automotive, truck leasing, transportation logistics and professional motorsports. In 2001, Mitsui acquired roughly 3% of in Penske Automotive Group, Inc. ( PAG, listed in NYSE, International Transpiration Services Company), then gradually increased its ownership up to 18.1%, the 2 nd largest shareholder (PC owns 39.8%) In 2015, Mitsui acquired 20% interest in PTL. The strategic partnership with PC, fostered through the investment in PAG, was key to this transaction, built upon trust of PC and Mitsui. PTL PAG

11 5. Partnership with Penske group companies B) Mitsui Strategic Considerations Via the PTL investment, Mitsui has advanced into a new business area of truck leasing & rental. Mitsui has acquired an excellent platform in the North America market with growth, stability and profitability. Via the PAG investment, Mitsui is able to reach out to various automotive businesses across the value chain. PAG s fully diversified business portfolio as International Transportation Services Company fuels its global growth. Mitsui to support PAG/PTL sustainable growth by bringing new mobility trends and fully utilizing the geographic coverage of the PAG/PTL network Mitsui to define PTL/PAG as a platform to develop its mobility business and promote its services across all business units and group companies 11

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